Profits at fast food chain Domino’s have tumbled amid a battle with its franchisee store owners and troubles overseas.

It posted profits of £61.9million, down 22 per cent on a year earlier. Sales in stores open more than a year in the UK increased 4.6 per cent compared with a year earlier, while revenues across the entire group increased by 9 per cent to £1.2billion.

In addition to the UK and Ireland, Domino’s also operates stores in countries including Switzerland, Liechtenstein and Germany. But its international business has hurt growth as it struggles abroad to replicate the success of its pizza.

Domino's posted profits of £61.9m, down 22 per cent on a year earlier. Sales in stores open more than a year in the UK increased 4.6 per cent compared with a year earlier

Norway and Sweden have proved particularly tough to crack. David Wild, the chief executive of Domino’s, said: ‘Internationally, we have experienced some growing pains which have hampered our overall financial performance.’

Analysts said the slump in profits came as a shock.

Earnings were hit by one-off costs such as £4.5million for the Norwegian expansion.

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Wayne Brown, an analyst at Liberum, said: ‘There is no comment from Domino’s on current trading and vague guidance on openings – both quite telling in our view.’

The pizza firm has also been struggling to meet ambitious store opening targets in the UK amid a backlash from franchisees who run its shops and who have been dragging their heels over opening new outlets as they demand a larger slice of Domino’s profits.

They have also complained of a financial hit from higher ingredient costs.

Domino’s opened 58 stores in the UK last year but has scrapped targets for the year ahead, saying openings are likely to be lower given the dispute.

It now has more than 1,100 stores, a figure which is 500 short of its long-term target.